Monday, July 25, 2011 | 2:01 a.m.
The fastest way to create jobs in the current economic mess is to raise taxes. Not a couple of percentage points with corresponding loopholes so no one ends up paying any more than they did before the tax hikes; tax hikes to a significant enough level that people are motivated to invest and increase the velocity of money.
The current tax levels encourage hoarding. There is no disincentive to letting huge amounts, say $2 trillion, of capital sit idle. The opportunity cost of hoarded wealth is it takes away the opportunity for anyone else to invest it and create jobs.
The tax policies of the past 30 years have shown that cutting taxes to create jobs is like quitting your job to pay the bills. If it worked, we wouldn’t be 8 million jobs short.
Ultimately, low taxes in a bad economy encourage the wealthy to be lazy.